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Greetings, SMJ, and welcome. You asked:

<<A company my wife use to work for had a flexibly annuity plan through Mutual of America for their retirement plan. She no longer works there. Return is 5.5% annually. Can she roll this over into something with a higher yeild without penatly? Her former company still mantains the plan but no longer contributes although she still could.>>

Perhaps. She needs to check with her former employer as to the plan's provisions. If this is a qualified retirement plan, then she should be able to surrender the annuity and transfer the net proceeds to an IRA. But the plan might also restrict her options in that regard.

If it's not a qualified plan, then she cannot roll that money to an IRA under any circumstances. In the latter case she could leave the plan in place, transfer it via a Section 1035 transfer to a better-performing annuity, or surrender the annuity and pay income taxes on any gain plus a 10% penalty if she's under the age of 59 1/2.

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